Total People – Update
Upper Tribunal appeal outcome on Total People
HM Revenue & Customs have successfully over tuned a First Tier Tribunal decision from August 2010 that business motoring allowances paid to staff were exempt from National Insurance Contributions. In Total People (now Cheshire Employer and Skills Development Limited) the Upper Tribunal rejected the employer’s claim for repayment of NIC on amounts attributable to business motoring expenses. The tribunal concluded that car allowances paid were correctly subjected to NIC and as such no refund is due. The tribunal found that the car allowance payments were not of “relevant motoring expenditure” and hence not eligible to be disregarded as NIC earnings.
In our briefing document, we consider the implications for employers following this decision.
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Total People – Update (PDF)